M-Akiba Bond is a revolutionary mobile-based bond launched by the Kenyan government. This innovation allows Kenyans to invest in government securities using their mobile phones. First introduced on March 23, 2017, the bond aimed to make government securities more accessible to the public while funding infrastructure and development projects.
Unlike traditional bonds, which required large investments, M-Akiba lowers the entry barrier, enabling more Kenyans to participate in government investments. This financial innovation aligns with Kenya’s fintech advancements, following in the footsteps of M-Pesa.
How Does M-Akiba Work?
M-Akiba Bond operates through mobile technology, allowing individuals to buy and trade bonds using their mobile wallets such as M-Pesa and Airtel Money. Investors can purchase bonds in denominations as low as KES 3,000, making it highly inclusive.
Steps to Invest in M-Akiba Bond:
- Register on your mobile phone – Dial *889# on Safaricom or Airtel.
- Open a CDS account – The system guides users in creating a Central Depository System (CDS) account.
- Deposit funds – Use M-Pesa or Airtel Money to load your mobile wallet.
- Buy bonds – Invest with as little as KES 3,000 and increase in multiples of KES 500.
- Earn interest – Investors receive 10% tax-free interest per annum, paid biannually.
- Trade on the Nairobi Securities Exchange (NSE) – Sell the bonds if you need liquidity before the maturity period.
Why Kenyans Are Excited About M-Akiba Bond
M-Akiba Bond is a game-changer in Kenya’s financial sector. Here are 16 reasons why it has gained massive interest:
1. Tax-Free Investment
Unlike other financial instruments, M-Akiba Bonds are tax-free, meaning investors enjoy the full 10% annual interest without deductions.
2. Mobile-Based Investment
Investors only need a mobile phone to buy and sell M-Akiba bonds. No need for paperwork or visits to financial institutions.
3. No Middlemen or Brokers
The bond allows direct transactions between Kenyans and the government, eliminating broker fees.
4. Tradable on Nairobi Securities Exchange (NSE)
M-Akiba bonds can be sold before maturity at the NSE, providing liquidity to investors.
5. Flexible Investment Options
Investors can start with KES 3,000, making it one of the most affordable government investments.
6. Guaranteed Returns
With a 10% annual return, M-Akiba offers a higher yield than most fixed deposit accounts in Kenyan banks.
7. Encourages Domestic Investment
Previously, government bonds were dominated by institutional investors. M-Akiba allows ordinary Kenyans to invest in their country’s development.
8. Enhances Financial Inclusion
Kenyans who were previously excluded from government securities due to high investment thresholds can now participate.
9. Promotes Financial Literacy
Many Kenyans are now aware of government investment opportunities, promoting financial education and smart investment habits.
10. Strengthens National Economy
Since the investment is locally sourced, the money remains within the country, reducing reliance on foreign lenders.
11. Encourages Savings Culture
M-Akiba locks funds for three years, preventing impulsive withdrawals and encouraging long-term saving habits.
12. Government Transparency
More Kenyans are now keen on monitoring how the government utilizes funds raised through bonds.
13. Reduced Risk Compared to Other Investments
Unlike stocks or forex trading, M-Akiba is a low-risk investment, backed by the government.
14. Ease of Access
Transactions happen through USSD codes, making it accessible to individuals without internet access.
15. Encourages Higher Mobile Money Limits
The government considered increasing M-Pesa limits to accommodate higher bond purchases.
16. Supports Kenya’s Development Goals
M-Akiba provides the government with affordable domestic credit for infrastructure and other public projects.
Future of M-Akiba Bond
The initial offer aimed to raise KES 150 million, with a larger KES 4.85 billion bond planned for June 2017. If widely adopted, M-Akiba could transform Kenya’s savings and investment culture, leading to greater economic self-sufficiency.
Final Thoughts
M-Akiba Bond is a groundbreaking financial innovation, making government investments accessible to all Kenyans. With affordable entry requirements, tax-free returns, and mobile-based convenience, this bond is a game-changer in financial inclusion and economic development.
Whether you are a seasoned investor or a first-time saver, M-Akiba Bond provides a secure and rewarding way to grow your wealth while supporting national development.
Email: taxkenya@gmail.com
